The October budget will be “painful”, Sir Keir Starmer has said, giving the biggest hint yet of tax rises.
Speaking from Downing Street on Tuesday, the prime minister said: “I will be honest with you, there is a budget coming in October and it’s going to be painful.”
He added: “Just as when I responded to the riots, I’ll have to turn to the country and make big asks of you to accept short-term pain for long-term good. The difficult trade-off for the genuine solution.”
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2:51
‘Things will get worse before they get better’
Sir Keir said “those with the broadest shoulders should bear the heavier burden” and “those who made the mess should have to do their bit to clean it up”.
The first group he linked to the scrapping of the non-dom tax status, and the latter to water companies paying fines.
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The Conservatives have accused the prime minister of a “betrayal” of people’s trust after he promised not to raise taxes.
Tory leader and former prime minister Rishi Sunak posted on social media: “Keir Starmer’s speech today was the clearest indication of what Labour has been planning to do all along – raise your taxes.”
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The prime minister referenced the “£22bn black hole” in the nation’s finances – that he said the Office for Budget Responsibility did not know about – as he took aim at the last government.
“I said change would not happen overnight,” Sir Keir said. “When there is a deep rot at the heart of a structure, you can’t just cover it up… you have to overhaul the entire thing, tackle it at root. Even if it’s hard work or takes more time.”
PM offers clue on which taxes might rise – as he makes early case for two terms in power
Sir Keir Starmer is asking for more time and to trust him.
As expected, the prime minister used his speech this morning to lay the blame for the myriad problems in this country on 14 years of Tory rule.
He said successive Conservative governments allowed a “rot” to set in that will take a decade to reverse – which is essentially an ask for two terms in power.
But he also spoke about bringing honesty and integrity back into politics and with that sentiment, he made a pretty stark admission.
He described the budget that’s coming in October as “painful” and especially for those “with the broadest shoulders” – the biggest clue so far about where there might be tax rises.
And too, an explanation for what Starmer calls “difficult choices” as he asks the public to “accept short-term pain for long-term good”.
Asked by Sky News’ political editor Beth Rigby which specific tax rises are being considered, Sir Keir reiterated that taxes on “working people” – like income tax, VAT and national insurance – will not go up.
He added: “We have to get away from this idea that the only levers that can be pulled are more taxes, or more spending.
Image: Dominic Cummings in the Downing Street rose garden in 2020. Pic: PA
This appeared to be a deliberate choice, as Sir Keir said: “This is a government for you, a garden and a building that were once used for lockdown parties.
“Remember the pictures? Just over there? With the wine and the food. Well, this garden and this building are now back in your service.”
Sir Keir has repeatedly blamed the previous government and said it is influencing his decision-making.
The government’s claims of a £22bn “black hole” left by the Tories have been questioned following substantial pay awards to unions – including to both junior doctors and train drivers.
Sir Keir said he “didn’t want to means test the winter fuel payment”, but it was a choice that needed to be made to “protect the most vulnerable pensioners”.
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Laura Trott, the Conservatives’ shadow chief secretary to the Treasury, said: “The government are no longer promising to protect working people from their incoming tax raid because just like pensioners, working families are next in line for Labour’s tax hikes.
“After promising over 50 times in the election not to raise taxes on working people Labour are now rolling the pitch to break even more promises.
“The chancellor is entitled to raise taxes to pay for her expensive choices and above inflation pay rises demanded by her union paymasters, but she should have had the courage to be honest from the start.
“This a betrayal of people’s trust and we will hold them to account for their actions.”
Wes Streeting has defended plans to make over 70s take compulsory eye tests every three years – which could see them banned from driving if they fail, it is understood.
Ministers are considering “tougher” measures to tackle road deaths and injuries in England and Wales, which they believe have “remained stubbornly high under successive Conservative governments”.
Under the new proposals, first reported by The Times, the drink-drive limit would be lowered to match the current rules in Scotland.
Currently, the drink-drive limit is 35 micrograms of alcohol per 100 millilitres of breath in England and Wales, or 80 milligrams of alcohol per 100 millilitres of blood.
But this is expected to be lowered to 22 micrograms of alcohol per 100 millilitres of breath or 50 milligrams of alcohol per 100 millilitres of blood, to match the stricter levels already enforced in Scotland.
Those caught not wearing a seatbelt could also receive penalty points for the first time, while drivers found on the road without insurance could also face more severe consequences.
As well as this, plans are currently being drawn up to make those aged 70 or over take a compulsory eye test every three years when they renew their driving licence.
Those who fail this would lose their right to drive under the proposals. It’s understood that tests for other conditions, such as dementia, are also being considered.
Speaking on Monday, Mr Streeting said the transport secretary is consulting and “considering a whole range of proposals”, which will be unveiled in the “not too distant future”.
It is understood that Heidi Alexander will unveil the measures in a new road safety strategy in the autumn.
Image: Transport Secretary Heidi Alexander is expected to introduce the changes as part of the government’s road safety strategy in the autumn.
Pic: Reuters
The health secretary also defended the plans around elderly drivers.
He told broadcasters: “It cannot be right that we’ve ended up in a situation where the NHS is hit with a £2 billion a year bill because we are not taking road safety seriously enough – particularly as we get older and the quality of our eye health deteriorates, that we’re not keeping a regular check.”
A Labour source said: “At the end of the last Labour government, the number of people killed and seriously injured on our roads was at a record low, but numbers have remained stubbornly high under successive Conservative governments.
“In no other circumstance would we accept 1,600 people dying, with thousands more seriously injured, costing the NHS more than £2bn per year.
“This Labour government will deliver the first Road Safety Strategy in a decade, imposing tougher penalties on those breaking the law, protecting road users and restoring order to our roads.”
It comes after 1,633 people died in road traffic accidents in 2024, with nearly 28,000 victims seriously injured.
Image: The UK Health Security Agency (UKHSA) has issued alerts across England
The UKHSA, a government agency for England, warned “significant impacts are likely” across health and social care services due to the high temperatures.
Parts of the country are facing a fourth heatwave of the summer, where highs pass a threshold on three consecutive days.
A yellow alert, also between 9am on Tuesday until 6pm on Wednesday, covers the North East, North West, Yorkshire, The Humber, and the South West.
Dr Paul Coleman, consultant in public health at UKHSA, said temperatures are forecast to rise above 30C (86F) across some areas which “can result in serious health outcomes” particularly for the elderly or those with serious health conditions.
“If you have friends, family or neighbours who are vulnerable, it is important to ensure they are aware of the forecasts and are following the necessary advice.
“Check in on them if you can to make sure they know that hot weather is on the way and how to keep themselves safe,” Dr Coleman said.
Image: Temperatures could peak in the low 30s on Tuesday, with a small chance of hitting 35C (95F)
Sky News meteorologist Christopher England said the high pressure that brought the warmth of the last few days via the “heat dome” effect is moving east, as low pressure moves in towards the west.
“On Tuesday, southern Britain can expect temperatures widely into the low 30s… perhaps exceeding 35C (95F) in places,” he said.
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2:11
Drought in England explained
On 1 July, the UK recorded its hottest day of the year so far with a temperature of 34.7C (94.4F) recorded at St James’s Park in central London.
The Met Office’s criteria for a heatwave are met when temperatures are above a certain level for three consecutive days. This threshold varies from 25C to 28C (77F to 82F) depending on the location.
Image: People enjoying the hot weather in North Shields in June. Pic: PA
Mr England added: “There’s around a 10% chance Wales may exceed its August peak temperature of 35.2C (95.3F) recorded at Hawarden on 2 August 1990.
“Expect some tropical nights too, with temperatures holding above 20C (68F).”
The UKHSA has issued advice for keeping cool: • close windows and curtains in rooms that face the sun • seek shade and cover up outside • use sunscreen, wear a hat and sunglasses • keep out of the sun at the hottest times, between 11am and 3pm • restrict physical activity to the cooler mornings or evenings • know how to respond to heat exhaustion and heatstroke
Around 30 residents have been evacuated from their homes in north London after a water main burst, leaving roads under 44cm (17in) of water.
Seventy firefighters were dispatched by London Fire Brigade to the area around Canonbury Street in Islington just after 10pm on Sunday.
People have been urged to avoid the area including Essex Road, Elmore Street, Halliford Street and Ecclesbourne Road – and warned against driving through floodwater.
Image: Canonbury Street in Islington experienced significant flooding. Pic: London Fire Brigade
Fire crews used flood barriers and sandbags to divert floodwater away from homes as they warned disruption was likely to continue into Monday afternoon.
Islington council also warned at 9am on Monday that Canonbury Street was closed from Essex Road up to Arran Walk.
A Thames Water spokesperson said: “We have now managed to stop the flow of water and ensure that the site is safe. We have also been able to move parked cars which were over another critical water main.
“We have a specialist team on site for those impacted by the incident, at Cedar Place on Essex Road, and are supporting customers who have been affected.
“To keep the public and our team safe, we’ve arranged equipment to help manage the traffic while we work in the road. We are sorry for the impact this may have on traffic in the area.”